ASTG has today signed an agreement to buy Satmission AB from Allgon AB (listed on Nasdaq First North Growth Market). The acquisition, which is part of ASTG's accelerate strategy, brings an additional product line to the ASTG portfolio. The purchase price consists of 2.5 million B-shares in ASTG AB valued at approx. 5 475 000 SEK. The parties have in addition agreed a 3 years Earn-out model. The acquisition of Satmission AB brings ASTG an additional order backlog of 3.9 MSEK. The transaction will have financial effect from April 1, 2020. Allgon AB will after completion of the transaction own approx. 7.5% of the shares in ASTG AB.
ASTG has today acquired Satmission AB from Allgon AB. Satmission is developing, producing, and selling satellite high-end ground solutions for the broadcast and military market. The main product and technology is focused on a so-called Drive-Away solution, which can be mounted on the top of a car or truck. The purchase price consists of 2.5 million ASTG B-shares valued at approx. 5 475 000 SEK. In addition, the parties have agreed on a 3 year earn-out model based on performance of Satmission AB. Payment is done based on the annual revenue, with an accumulated minimum payment of 4.59 MSEK after 3 years. There is no maximum agreed. ASTG has the right to defer payment until February 2022 on the first year's Earn-out. The transaction includes transfer of all staff, technology, products, customers and customer lists, development, and production facilities, from Allgon AB to ASTG AB. With the acquisition of Satmission AB, ASTG will add 3.9 MSEK to its order backlog to be delivered in the coming months. The transaction will have financial effect from April 1, 2020, and ASTG will account the full Q2, 2020 results and balance sheet of Satmission AB into its Q2, 2020 financials. The company is based in Kalix, Sweden.
The acquisition is part of ASTG's accelerate and diversification strategy. Satmission has a long history of selling SatCom solutions since 2004 and will add an additional product to the ASTG SatCom portfolio. The products fall within the Comms on the Pause (COTP) segment, and together with the recent Comms on the Move (COTM) acquisition, ASTG is improving its competitive edge in the Land-Mobile segment for satellite communication.
"I am very happy to announce that ASTG is now adding an additional product to SatCom portfolio and I am pleased to welcome new and experienced colleagues to our team. This acquisition is opening up for further synergies on the sales, marketing, technology and supply chain, and expands our platform for capturing current and future markets", says Carsten Drachmann, CEO at ASTG.
Carsten Drachmann, CEO
Telefon: +45 4063 4036
About Satmission AB
Satmission is a leading designer and manufacturer of mobile satellite communications systems for broadcasting. Satmission's satellite dishes are designed especially for media houses and broadcasters who need high data transfer rates for live reporting even under the most extreme weather and temperature conditions. The antennas are designed to send content to or from sites where infrastructure is limited. In addition to antenna products, Satmission also offers customers streaming services over LTE1 and satellite.
For more information on Satmission: www.satmission.com
About Advanced Stabilized Technologies Group AB
ASTG includes the wholly owned subsidiary AIMS AB.
ASTG AB develops, manufactures and sells innovative 4-axes stabilizing VSAT antennas for maritime use. The company is also selling development projects based on C2SAT's antenna platform. AIMS AB develops and sells advanced inertial sensor units (IMUs) designed to measure movements in three dimensions.
The company's registered office is in Stockholm, Sweden.
The company is listed at Nordic SME stock exchange.
This information is provided from ASTG AB in accordance with the EU Market Abuse Regulation (MAR). The information was submitted for publication on May 12, 2020 at 21.00 CET, by the above contact person's authority.
For accuracy, please exclusively rely on the Swedish version. Should there be unintentional translation differences between the English and the Swedish press release, the Swedish version will take precedence.